You can receive up to 30% of the renovation budget
You can receive up to 30% of the renovation budget

Can I get a mortgage to buy and renovate a house in Spain?

Some Spanish banks, such as UCI, offer specialized mortgage products specifically designed for this purpose. These mortgages cover both the property's purchase price and renovation costs. Find out everything you need to know for an informed decision.

Delia Mihuț
Written by Delia Mihuț
Published at 2023-08-14T15:17:48Z
Last updated at 2023-08-15T13:08:39Z
Readtime 4 minutes

Have you found the house you were seeking in Spain, but discovered it needs renovation? Even though it may have seemed like a challenging choice, there are solutions available to assist you. 

Keep reading to learn how to navigate this process if you are in this situation. This guide will explore the key factors, and practical steps to make your dream of owning and renovating a home in Spain a reality.

Is it hard to get a mortgage in Spain as a non-resident?

Obtaining a mortgage in Spain as a non-resident is more complex, with challenges such as additional documentation, reduced borrowing limits, and higher interest rates. 

While it's not impossible, the process may require more effort, higher costs, and professional assistance, such as hiring a local lawyer or mortgage broker to assist non-residents.

Can I get a mortgage to buy and renovate a house in Spain?

Yes, obtaining a mortgage in Spain to buy and renovate a house is possible. 

Some Spanish banks, such as UCI, offer specialized mortgage products specifically designed for this purpose. These mortgages cover both the property's purchase price and renovation costs.

An essential factor is that this loan is only granted if you purchase a second-hand property.

What renovation mortgage does UCI offer?

UCI provides a maximum mortgage term of 30 years, allowing you to collaborate with a refurbishment company. 

You can receive the amount for the purchase and up to 30% of the renovation budget, with the funds disbursed as the renovation progresses.

UCI will have an appraisal company monitor the progress of the works. 

They will assess the status of the reform for 100 EUR + VAT (121 EUR VAT included) each time you request a review. 

What should I prepare to get a UCI Spanish mortgage to buy and renovate a house?

To get a UCI Spanish mortgage for buying and renovating a house, you will need to prepare the following documents and information:

  1. National ID or passport
  2. Foreigners ID - NIE (Número de Identificación de Extranjero)
  3. Payslips from the last 3 months (helps in assessing your income stability)
  4. Annual tax payments and deductions certificate
  5. Last tax return
  6. Proof of the main residence
  7. Employment contract and withholding certificate
  8. Bank statement from the last 6 months (shows your financial stability and spending habits)
  9. Savings and investments statements
  10. Credit report

Translations are not needed for Spanish, English, French, and German applications.

Keep in mind that a renovation mortgage is a complex product. For a better understanding, contacting UCI is recommended to receive detailed insights addressing your questions.

Is there an easy option to access a Spanish mortgage as a non-resident?

Homevest is a digital platform designed to help non-residents and foreigners easily navigate the world of cross-border mortgages. What makes it even more appealing is that it's completely fee-free, and there are no charges for assistance. 

Here are all the advantages at-a-glance:

  • Homevest account online for free
  • No hidden fees - they only earn a commission from the bank on completion of the mortgage
  • Works with all the leading banks in Spain, including UCI, Santander, Sabadell, Unicaja, Cajasur, Caixa Bank, Cajamar, Bankinter
  • Assist you in comparing offers from various banks, saving your time and money
  • Provides service in English, Spanish, Swedish, Finnish, Italian, and Romanian

You can easily upload and consolidate all the documents for a Spanish mortgage application in your Homevest account.

Tips to help you get a mortgage to buy and renovate a house in Spain

  1. Don't limit yourself to new build areas. The best locations that meet your needs and expectations are often found elsewhere. 
  2. Be aware that you may have access to additional finance for refurbishment, which can expand your options and enable you to consider properties that need renovation.
  3. UCI offers a grace period of up to 12 months, where you only pay interest until completion. This can ease the financial burden during the renovation process, allowing you to focus on creating your dream home.
  4. Speak with a UCI mortgage specialist. They can provide insights into all the available mortgage products and help you customize a plan that aligns with your unique needs, financial situation, and renovation goals.
  5. Familiarize yourself with the legalities of buying and renovating property in Spain. This includes zoning laws, building permits, and other regulations that may affect your project.

Sources used and checked in August 2023:

  1. UCI renovation mortgage

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.

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